The battle of Waterloo was won on the playing fields of Econ 101

DelarocheNapoleonMost histories of Napoleon’s downfall begin with his disastrous invasion of Russia, and at first glance, this seems appropriate. Napoleon suffered huge losses, failed to gain much of anything, and never won a campaign again after the invasion. It seems like the obvious point where his fortunes turned for the worse.

But the truth is, Napoleon’s downfall started much earlier. And it wasn’t due to any “nearest-run-thing-you-ever-saw” kind of bad luck that happens in battle, either. It was due to the fact that Napoleon didn’t understand economics nearly as well as warfare.

In 1806, the British Empire began a naval blockade against France. In retaliation, Napoleon–who at this point controlled most of continental Europe–enacted an embargo against trade with Britain, forbidding all French-controlled nations from importing British goods.

By all accounts, it didn’t work. Even the Empress Josephine herself purchased smuggled British products.¹ And Britain simply made up the losses in revenue from Europe in other parts of the world.

Finally, it was in an attempt to impose his ban on British goods that Napoleon invaded Russia to begin with! If he hadn’t been trying to enforce the embargo, he would never have had to make such a risky move at all.

At the time, France had a very strong military tradition. Nowadays we tend to stereotype Germany as the most militaristic European nation, but German militarism is heavily rooted in reforms introduced in Prussia following their losses to Napoleon. So in the early 19th century, it was French militarism vs. British capitalism.

Napoleon was a great military strategist and leader, but he seems to have been pretty ignorant when it came to economics and trade. Napoleon fell into the error of regulators everywhere, in that he assumed he could end demand for goods by making them illegal. In fact, all he did was create a lucrative black market for the British and punish his own people simultaneously.

It would have been different if Napoleon had been able to defeat the British Navy. Then he maybe could have enforced the embargo more effectively. But then, if he could defeat the British Navy, the whole problem of Britain would have been solved anyway.

Napoleon was seeing everything in military terms–that was what he was trained to do, after all. British policy was designed more in economic terms, and the military (mainly the Navy) was just a tool used by Britain to secure their material wealth. The results of the differing philosophies speak for themselves: Napoleon got to be in a lot of famous battles, sure; but eventually lost his Empire and died alone on St. Helena. Britain became the dominant superpower in the world for the next century.

Napoleon should have been patient. Yes, the British were constantly financing uprisings against him, but they weren’t working out very well, and they couldn’t keep it up forever.

There are a couple lessons here. First, you can’t ignore the laws of economics, even if you are the greatest military strategist of your time. And second, though it may be more dramatic to depict Napoleon’s downfall with a retreat from a burning Moscow or a failed charge at Waterloo, he sealed his own fate much earlier with a serious error of his own design.

Study Economic policy, or this could be you. (“Fire of Moscow” by Viktor Mazurovsky. Image via Wikipedia)

It’s easy to point to one battle or one bit of bad luck as being “Where It All Went Wrong”, but oftentimes, such events are really just the culmination of a less dramatic, more systematic bad decision made much earlier.

So instead of saying “So-and-so met their Waterloo when…”, look instead for when So-and-so made their Continental System.

UPDATE 5/22/2018: See Patrick Prescott’s post on this subject for more info–he has a lot more expertise on this than I do.


  1. See Napoleon: A Life, by Andrew Roberts. p. 429


  1. That’s interesting – one of the things I remember about Napoleon is when he left his troops in Egypt. It’s pretty crazy to think that any leader would do that.

    1. It sure is. Napoleon could be a real jerk, although apparently most of his soldiers liked him. The rest of the French people, not so much.

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